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Vedanta Secures Interim Relief for Demerger Plan from NCLAT
May 30, 2025
Vedanta received an interim stay order from the National Company Law Appellate Tribunal (NCLAT), after a prior order by the National Company Law Tribunal (NCLT) had rejected its demerger scheme. The NCLT’s rejection stemmed from objections raised by China-based creditor SEPCO Electric Power Construction Corporation, which claimed a non-disclosure of ~$147mn in outstanding debt by Vedanta’s power unit, Talwandi Sabo Power Ltd (TSPL).
As a condition for the interim stay, the NCLAT has directed TSPL to furnish a bank guarantee of the same amount within two weeks to protect SEPCO’s interests. A detailed hearing for the matter is scheduled for 4 August 2025. This legal development was a hurdle to Vedanta’s broader strategy to demerge its operations into five independent, separately listed entities, including aluminum, power, iron & steel, and oil & gas businesses, aimed at unlocking shareholder value. The company has reiterated its commitment to this strategic reorganization, which has seen its completion deadline extended from March 31 to September 30.
Vedanta’s recently issued 9.85% 2033s traded stable at 94.9, yielding 10.8%.
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